Robinhood’s reputation has taken a battering lately but it hopes to regain credibility among the crypto community by introducing cryptocurrency transfers.
The controversy laden trading platform Robinhood announced today it intends to implement cryptocurrency deposits and withdrawals. While customers have been able to buy and sell cryptocurrency via the platform for some time, they are unable to access the coins themselves to transfer them to other wallets.
According to a series of tweets published from the company’s Twitter account, work on integration of cryptocurrency transfers has already begun, though no dates or specifics were provided on when it will go live.
Robinhood also clarified that crypto deposits would be custodied by their own wallets and added the company does not invest in cryptocurrency and will not use customer funds for its own benefit.
So much interest in Crypto! To be crystal clear , we fully intend to provide the ability to deposit and withdraw cryptocurrencies, including DOGE. Robinhood Crypto does NOT currently invest in cryptocurrency or use any customer cryptocurrency for our own benefit.
— Robinhood (@RobinhoodApp) February 17, 2021
Robinhood currently has seven cryptocurrencies listed for trade on their platform, including Bitcoin, Dogecoin, Ethereum, Litecoin, Ethereum Classic, Bitcoin Cash, and Bitcoin SV. It is unclear if they intend to roll out support for transfers of all seven coins.
Don’t sleep! Much wow! Robinhood Crypto offers seven tradeable coins, so you can buy and sell crypto like DOGE, BTC, ETH and LTC, 24/7/365. We’re also building deposits and withdrawals for ALL listed cryptocurrencies. https://t.co/uX8NghfAMU
— Robinhood (@RobinhoodApp) February 16, 2021
On Jan. 29, Robinhood suspended instant fiat deposits in response to social media-fueled speculation, chalking up the decision as a reaction to “extraordinary market conditions.” The company was already under fire from both customers and regulators after restricting purchases of a select handful of securities offered for trade on its platform. By Feb. 4, Robinhood had reinstated instant deposits for crypto purchases.
The decision to expand cryptocurrency-related services comes at a time of increasing distrust of centralized service providers. Not everyone believes the move to offer crypto deposits and withdrawals will help Robinhood regain credibility lost through its recent actions. Others have questions about how the deposit and withdrawal process will work; specifically as it relates to customer access of private keys.
Exactly what he said . Why use all these words and terminology. Answer the basic question. We want our own wallets and crypto keys. Can robinhood do that? Simple yes or no would be suffice.
— Dsanz (@alwaysgivemore2) February 17, 2021
On Feb. 7, a 30 second NFL Super Bowl commercial aired for Robinhood in which a new slogan for the company was unveiled: “We are all investors.”